Excess Reserves Are

question 142

Multiple Choice

Excess reserves are

• A) checking deposits that are included in the M1 money supply but not the M2.
• B) savings deposits that are included in the M2 money supply but not the M1.
• C) actual reserves held by banks that exceed the legal requirement.
• D) the portion of deposits that banks are required by the Fed to hold as reserves against their deposits.

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Definitions:

C$ Per ¥1.00

The exchange rate expressing the value of one Canadian dollar in terms of Japanese yen.

Decreases

The process of becoming smaller or fewer in quantity, size, or intensity.

¥1.00

The Japanese Yen currency, represented by the symbol ¥, with 1.00 indicating the unit amount.

Appreciated

Refers to an increase in value of an asset over time.